Billions of investment dollars are needed to develop many new products.This trend toward higher development costs is likely to have which of the following effects on future modes of operations?
A)Collaborative arrangements are likely to decrease because a company making a breakthrough will be leery of partners' appropriation of knowledge.
B)Collaborative arrangements are likely to increase because of the huge investments needed for development.
C)Exporting will become more important relative to other operating modes because of the large scale production facilities necessary for economic efficiency.
D)Cross-licensing will gain in importance because companies will be forced to specialize more in different technologies.

Question

Quizplus · Accepted Answer

With higher development costs, it is likely that collaborative arrangements will increase as companies would want to share costs and risks. Cross-licensing may also gain in importance as companies specialize in different technologies. However, exporting and large scale production facilities are not directly related to the trend of higher development costs.

Billions of Investment Dollars Are Needed to Develop Many New